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by lagadu 3462 days ago
The logic is punitive vs compensatory damages, medical malpractice is a good example: it's to prevent people trying to get rich by trying to get into malpractice situations and to not start futile suits just hoping for a payout. The idea is that if there isn't a massive payout at the end then the majority of lawsuits would be brought by people who were actually harmed by whoever they're suing and want justice more so than they want to get rich.

This way you reduce the incentive for futile suits and malpractice hunting while keeping the penalties harsh for those who do it.

Compensatory makes sense to go to the claimant but punitive not so much; it's purpose is to make financially unwise to keep whatever practices an entity was found guilty of.